| SAN FRANCISCO, July 10
SAN FRANCISCO, July 10 CDNetworks Co. Ltd.
073710.KQ has expanded into the United States from its core
markets in North Asia and aims to overtake rival Limelight as
the world's No. 2 supplier of so-called content delivery
networks used to speed up Web services.
"The U.S. is a big focus for us," Steve Chung, vice
president of business development at South Korea's CDNetworks,
told a news conference in San Francisco on Tuesday. "With
growth in China and Japan, all in total, we think we are well
positioned to take the No. 2 spot."
Chung said it may take 12 to 18 months to reach the goal.
Limelight Networks Inc. (LLNW.O), which raised $205 million
in a mid-June initial public offering on Nasdaq, last week said
it entered the Japanese market, taking on CDNetworks in one of
the major markets that the latter company considers home turf.
CDNetworks went public on South Korea's KOSDAQ in 2005.
Market research group Frost & Sullivan ranks Limelight as
the world's No. 2 player, with a 9 percent share of the content
delivery market. CDNetworks, which is active in South Korea,
Japan and China, has 8 percent of the worldwide market.
The leader is Akamai Technologies Inc. (AKAM.O) with a
roughly 60 percent share, But it faces competition from a wide
variety of rivals seeking to upset the market with new
Akamai also helps speed up software delivery between
corporate branch offices, an area where CDNetworks is not
But its focus on the world's most advanced broadband mobile
phone and Internet markets has given CDNetworks expertise in
handling data-intensive traffic such as online video games and
video-streaming services. By contrast, U.S. Web market pioneer
Akamai is strong in accelerating delivery of traditional Web
page content -- text and graphics -- rather than richer media.
"Korea and Japan -- that is our playground. These are
laboratories for the future of digital media," Chung said in an
interview following the news conference. "We have an early look
at how the world of content delivery may evolve."
Chung said CDNetworks was targeting U.S. customers among
Internet service providers, backbone carriers and more-focused
Internet service resellers. The U.S. unit was set up in October
and has eight employees and expects to increase to 25 over the
next year or so. Globally, CDNetworks now employs 150.
CDNetworks already has 30 existing customers in the United
States, he said. Among its U.S. customers are Codemasters, a
game distributor, and Marshall Media, which delivers streaming
video programs including live sports shows.
The company operates nine centralized content storage and
acceleration points in the U.S. market and plans to expand to
30 sites over the next 12 to 18 months, Chung said.